Western Digital stock builds on storage demand after fiscal 2025 results

Western Digital (ISIN US9581021055) enters the new trading week with fiscal 2025 revenue of $10.58 billion and non-GAAP operating income of $1.02 billion, after fiscal Q4 2025 revenue reached $2.61 billion and non-GAAP operating income was $666 million. The company also reported diluted earnings per share of $3.39 on a GAAP basis and $5.44 on a non-GAAP basis for fiscal 2025, showing the scale of the profit rebound in the latest reported year.

Fiscal 2025 delivers the numbers

Western Digital said fiscal 2025 revenue rose 51% from the prior year to $10.58 billion, a comparison that matters more than any short-term tape move. The company also reported fiscal 2025 non-GAAP gross margin of 38.2%, up from 29.0% a year earlier, and non-GAAP operating margin of 28.9%, compared with 11.7% in fiscal 2024.

Those figures make the latest year less about a one-off rebound and more about margin repair. Gross profit for fiscal 2025 reached $4.04 billion, while fiscal 2024 gross profit was $2.00 billion, according to the company’s fiscal 2025 results.

Q4 shows the run rate

In fiscal Q4 2025, Western Digital reported revenue of $2.61 billion, up 30% year over year, with non-GAAP gross margin at 42.6% and non-GAAP operating margin at 31.2%. Non-GAAP diluted EPS for the quarter was $1.66, compared with $1.46 in the prior quarter and $0.67 in the same quarter a year earlier.

Free cash flow for fiscal 2025 was $1.50 billion, after the company generated $630 million in fiscal Q4 2025. Net cash from operations in fiscal 2025 reached $2.21 billion, and cash and cash equivalents stood at $3.08 billion at the end of the year.

Margin discipline matters

The market relevance for Western Digital stock now sits in the combination of higher revenue, higher margins, and stronger cash generation. Fiscal 2025 ended with total debt of $6.17 billion and total stockholders’ equity of $8.76 billion, a balance-sheet mix that is materially better positioned than during the lower-margin phase of the cycle.

Inventory at the end of fiscal 2025 was $1.82 billion, while accounts receivable were $2.18 billion and current assets totaled $8.07 billion. Those numbers matter because storage cycles are still driven by pricing discipline, supply management, and customer demand across cloud and client markets.

Product line signal

For Western Digital, the most representative product lens remains data storage hardware for cloud, enterprise, and client systems. The company’s fiscal 2025 report ties that product mix to a year of higher revenue, better margin conversion, and stronger free cash flow, which is more relevant to shareholders than a generic business description.

The company’s results also show that profitability improved faster than revenue. Fiscal 2025 GAAP net income attributable to Western Digital was $1.87 billion, compared with a GAAP net loss of $698 million in fiscal 2024, while non-GAAP net income rose to $1.50 billion from $631 million.

Stock context at the close

Western Digital stock closed at $67.45 on the Nasdaq on 19 July 2026, giving the company a market capitalization of about $23.7 billion as of that date. The share price sits near the top of the latest reported earnings cycle, with investors now weighing whether the higher margin profile can hold through the next storage-demand phase.